The value of currencies against gold has grown in recent years dramatically down. The other tendency seems determined: At the end of FIAT currencies are worthless – as in the last 5000 years also.
Jim O’Neill, chairman of Goldman Sachs Asset Management, spoke with Tom Keene and Sara on “Bloomberg Surveillance” today and said that the Bank of Japan must show it is serious about inflation targeting for the yen to weaken further.
O’Neill said: “We’ve traveled a long way since late November” and “classical indicators suggest it is oversold.” The Bank of Japan “has got to show its going to take this 2 percent [...]
Today’s AM fix was USD 1,571.50, EUR 1,298.12, and GBP 1,011.91 per ounce.
Friday’s AM fix was USD 1,583.00, EUR 1,291.30and GBP 1,007.83 per ounce.
Silver is trading at $26.98/oz, €22.36/oz and £17.94/oz. Platinum is trading at $1,396.00/oz, palladium at $564.80/oz and rhodium at $1,190/oz.
Gold climbed $2.90 or 0.18% in New York on Friday and closed at $1,583.90/oz. Gold initially traded sideways in Asia and then began to fall about 0.75% [...]
From Pragmatic Capitalism:
There has long been a strong correlation between the Nikkei and the U.S. dollar/yen. A similar version of this correlation is that of the Nikkei and U.S. interest rates. The thinking is rather simple.
As a trade surplus nation, the rising yen puts downward pressure on profits and Japanese equities. Unfortunately, the calls for a bottom in the U.S. dollar/yen have been made for years on end. But Credit [...]
Courtesy of Phil of Phil’s Stock World
Thank goodness the US is closed!
Europe is down a whopping 3.5% (so far) this morning, opening in free fall after Asia opened down about 2% on the average (but finishing at the day’s lows). Gold flew up to $1,906 before calming down but oil is down to $84.82 at 6:45 am as the Dollar tests its highs of 75.15 on the Euro’s fall [...]
The Japanese, plus some finagling with whatever minimum amount of actual Gold is held in the ETFs, especially the newer ones in India and China.
Word is now OUT that there are spot shortages of actual Gold all over Asia, as even the National, let alone private, Mints cannot get as much as they need to fabricate coins with the extraordinary demand this year for [...]
Interest Rates Are the Key to the Japanese Yen
By Jonathan Clark
The US will continue toÂ maintain both a stimulative fiscal and monetary policy: Fed Chairman Bernanke claims the economic recovery might not be self sustaining and has doubts the economy will grow fast enough to significantly cut the unemployment rate.
Extending the Bush tax cuts as well as additional tax cuts and increased deficit spending.
Dollar/yen has shown relatively little strength as [...]
by Jonathan Clark
More than six weeks ago we posted a commentary titled â€˜Japanese to Get an Early Emperorâ€™s Birthday Presentâ€™ which argued the yen would weaken into this important holiday on December 23. The yen has been trading like other Asian currencies including the KRW and SGD and declined as interest rates in the US rose faster than those in most other countries. Concern about the latest bout of quantitative [...]
Interview with Investment Week:
So, you would put RPI in five years time at 15%?
If all of the things I say come to passÃ‚Â I anticipate having a lot of inflationary traits. But some of the smartest minds in the marketplace have gone for logic rather than ironyÃ¢â‚¬Â¦ what I am saying is you have to respect policy makers. They are wise, educated, hard working, and [...]